Strategic Plan Fiscal Years Creating Value Through Collaboration
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1 Strategic Plan Fiscal Years Creating Value Through Collaboration
2 VISION The vision of the UT System Supply Chain Alliance is to be a leader in the delivery of world-class supply chain services within academic and healthcare higher education. MISSION The mission of the UT System Supply Chain Alliance is to provide reliable, sustainable solutions for the purchase and delivery of equipment, services, and supplies to support the core missions of education, patient care, and research at UT System institutions. Through collaborative and shared efforts and adoption of best practices, we will improve customer satisfaction, reduce cost, and create value. GUIDING PRINCIPLES Accountability Transparency Commitment to Success Continuous Improvement Historically Underutilized Businesses Opt-in / Opt-out Win/Win
3 Introduction The University of Texas System ( UT System ) Supply Chain Alliance ( Alliance ) has delivered demonstrative value and cost savings to UT System and affiliated institutions over the past four years. Holding true to our vision and mission to leverage UT System s collective purchasing power, the Alliance substantially achieved all strategic objectives as envisioned in the inaugural three-year strategic plan that ended in fiscal year The challenges that face the UT System academic and health institutions today are unprecedented in recent history. The charge to contain cost and increase operational efficiencies are daunting and endless. The Alliance provides a powerful collaborative forum to create cost saving opportunities and value. The strategic plan s five fundamental objectives establish the framework for the Alliance to remain a strong catalyst for positive change. The Alliance s guiding principles provide the historical focal point for continued success. As the Alliance moves forward to operationalize this plan, please join us as we seek to become the preeminent group purchasing program of choice. John F. Joshua Director of the Alliance September 2011
4 Objectives for Future Progress 1 2 Strategic Sourcing Collaboration Become the group purchasing leader of choice by conducting strategic sourcing events that are responsive to business needs based on spend analytics, savings opportunities, and operating efficiencies. Marketing and Outreach Create comprehensive internal and external marketing and communication programs designed to demonstrate the value and power of collaboration. Leverage the knowledge and value of affiliate and peer organizations. 3 Historically Underutilized Businesses Continue to develop, promote, and grow the utilization of Historically Underutilized Businesses through business partnerships and exploration of innovative value-added programs and services. 4 Business Intelligence Expand sourcing and non-sourcing business intelligence by providing decision support tools, education related to supply spend and operational efficiencies. 5 People Retain and reward our most valuable asset. Integrate forward-looking processes that continuously improve our governance and operations. The Alliance Strategic Plan: Creating Value Through Collaboration 2
5 1 Strategic Sourcing Collaboration Become the group purchasing leader of choice by conducting strategic sourcing events that are responsive to business needs based on spend analytics, savings opportunities, and operating efficiencies. Initiative 1.1 Initiative 1.2 Initiative 1.3 Initiative 1.4 Initiative 1.5 Conduct quantitatively-driven sourcing activities and lead comprehensive business case development for change as applicable. Create the most competitive sourcing environment that results in total cost of ownership (TCO) solutions greater than any available alternative. Leverage automation software that support operational efficiencies. Collectively promote executive leadership engagement in contract implementation activities, contract utilization, and maintaining a diverse contract portfolio. Leverage UT System s role in leading transformation in system -wide aggregation opportunities. Success Measures: Utilization of data analytics and market intelligence to identify prime collaboration opportunities. TCO benchmarking results that demonstrate the highest competitive value of agreements against best market alternatives. Implementation of software solutions that support strategic sourcing and procurement activity objectives. Utilization of third-party resources and partnerships to perform sourcing diagnostics, benchmarking, and return on investment analyses. Executive leaders ability to influence institutional change management that impacts cultural preferences and processes. Participation in the development and management of complementary shared services programs and initiatives. The Alliance Strategic Plan: Creating Value Through Collaboration 3
6 2 Marketing and Outreach Create comprehensive internal and external marketing and communication programs designed to demonstrate the value and power of collaboration. Leverage the knowledge and value of affiliate and peer organizations. Initiative 2.1 Initiative 2.2 Initiative 2.3 Initiative 2.4 Initiative 2.5 Establish incentives that will lead change, adoption, and utilization of preferred supplier agreements. Maximize the value of UT System s prestige in creating marketplace competitiveness. Develop a local Alliance presence for promoting preferred supplier partnerships. Target commodity and geographic sourcing requirements unique to Alliance affiliates. Establish best practice and benchmarking collaboration partnerships with peer organizations. Success Measures: Utilization of administrative fees to support infrastructure and growth. Development of outreach material and programs that educate suppliers on the Alliance. Employment of incentive based marketing and relationship optimization resources. Completion of strategic sourcing events and business intelligence activities specific to the needs of Alliance affiliates. Establishment of best practice collaboration partnerships with public and private peer organizations. The Alliance Strategic Plan: Creating Value Through Collaboration 4
7 3 Historically Underutilized Businesses Continue to develop, promote, and grow the utilization of Historically Underutilized Businesses through business partnerships and exploration of innovative value-added programs and services. Initiative 3.1 Initiative 3.2 Initiative 3.3 Maintain transparency of Alliance operational activities with UT System and local institutional Historically Underutilized Business offices. Mentor Historically Underutilized Businesses to increase participation in sourcing opportunities. Maintain contracting practices that are inclusive of Historically Underutilized Businesses. Success Measures: Develop and participate in educational and outreach opportunities for Historically Underutilized Businesses. Facilitate innovative mentoring programs. Adhere to Texas Government Code Chapter 2161 and UT System s UTS137. The Alliance Strategic Plan: Creating Value Through Collaboration 5
8 4 Business Intelligence Expand sourcing and non-sourcing business intelligence by providing decision support tools and education as it relates to supply spend and operational efficiencies. Initiative 4.1 Initiative 4.2 Initiative 4.3 Initiative 4.4 Initiative 4.5 Enhance information and knowledge transfer between institutional subject matter experts from core functional/operational areas. Develop programs that educate stakeholders on cutting edge cost containment strategies and processes. Provide automated sourcing solutions and services that increase operational effectiveness. Deploy robust spend analytics that facilitate continuous best value procurement. Assist institutions in assessing non-alliance sourced supply spend and operational efficiencies. Success Measures: Provide periodic updates to subject matter experts via web portals, reports, and sponsoring educational forums and meetings. Make the Alliance s technology accessible to institutional procurement organizations. Commission a web-based business intelligence spend analytics suite that provides institutions with on-demand decision support, data collection, and advanced analytical capabilities of supply spend. Develop and execute annual sourcing calendars supported by business intelligence. Provide advisory services for benchmarking and savings that yield bona fide return on investment perspectives. The Alliance Strategic Plan: Creating Value Through Collaboration 6
9 5 People Retain and reward our most valuable asset. Integrate forwardlooking processes that continuously improve our governance and operations. Initiative 5.1 Initiative 5.2 Initiative 5.3 Provide annual training programs for Strategic Sourcing Team personnel. Develop career path opportunities for growth and retention. Ensure the organizational governance remains flexible to accommodating internal and external change and growth. Success Measures: Individual competency profile development, completion, and demonstration of knowledge learned. Creation or expansion of position descriptions with roles and responsibilities that permit incremental levels of responsibility, leadership, and reward. Governance leadership ability to accommodate or adapt to organizational and operational change. The Alliance Strategic Plan: Creating Value Through Collaboration 7
10 In Summary The Alliance Strategic Plan builds on our strengths and enables the Alliance to achieve greater value for the UT System academic and health institutions. Future success will be attributable to the relentless pursuit of the vision and mission statements and the aggressive participation by all UT System institutions. The new objectives, initiatives, and success measures in our strategic plan will be augmented by annual work plans. These work plans will dedicate appropriate resources and establish challenging metrics to ensure the Alliance offers enormous value in the years ahead. The UT System institutions must continue to pursue innovative solutions that reduce operating expenses to ensure valuable resources are invested in programs, which promote excellence. Collectively, the Alliance, nine universities, and six health institutions have unlimited possibilities. The Alliance Strategic Plan: Creating Value Through Collaboration 8
11 Creating Value Through Collaboration Health Institutions UT Southwestern Medical Center UT Medical Branch at Galveston UT Health Science Center at Houston UT Health Science Center at San Antonio UT MD Anderson Cancer Center UT Health Science Center at Tyler Academic Universities UT Arlington UT Austin UT Brownsville UT Dallas UT El Paso UT Pan American UT Permian Basin UT San Antonio UT Tyler
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